Mr. Chris McGillivray reports

INDIGENOUS-LED ALLIANCE TO DELIVER ARCTIC-SECURED ENERGY SYSTEMS ACROSS CANADA'S NORTH

Aegis Critical Energy Defence Corp. partner Acho Dene Koe First Nation, a Treaty 11 signatory, through its indigenous-owned economic development holding company, ADK Holdings Ltd. (Acho Dene Koe Group of Companies), together with Malahat Energy Systems Inc. (majority-owned by the Malahat Nation) and Aegis Critical Energy Defence), has formed an indigenous-led alliance, with Malahat Energy Systems Inc. joining Acho Dene Koe Group of Companies to deploy rugged, Canadian-made energy storage and microgrid solutions across the Northwest Territories, Yukon, Nunavut and Northern British Columbia. This partnership is designed to strengthen regional energy security, support community-driven infrastructure priorities and advance indigenous leadership in the clean energy sector.

Canada's Northern communities, defence installations and critical infrastructure require resilient power systems capable of operating in extreme climates. The alliance launches at a time when the federal government is implementing its mandatory minimum 5-per-cent indigenous procurement target and advancing a $35-billion plan to expand Arctic airfields, construct new operational support hubs and modernize Northern defence infrastructure. Together, these initiatives are driving significant demand for secure, reliable power solutions that support northern communities, resource development projects and defence operations.

Offering

Under the agreement, Malahat Energy Systems Inc. and ADK Holdings Ltd. will jointly deliver solutions across five priority sectors:

• Defence and Arctic infrastructure;

• Indigenous community electrification;

• Mining and industrial operations;

• Marine electrification;

• Remote critical infrastructure.

Malahat will lead engineering, commissioning and lifecycle services. ADK Holdings will serve as the preferred indigenous partner and servicing from the First Nation's asserted traditional territory in the Yukon, British Columbia and Northwest Territories to the remainder of the North of 60 of Canada.

At the core of the alliance is Tough Bhoy, Aegis's rugged, mission-ready energy storage platform engineered specifically for harsh environments. Designed and controlled in Canada, the system integrates advanced thermal management and intelligent power controls with quantum-safe cybersecurity provided by Montreal-based Quantum eMotion Corp. (NYSE: QNC) (TSX-V: QNC) (FSE: 34Q0). Its patented Quantum Random Number Generator (QRNG) delivers a quantum-secured communications layer that protects against spoofing, replay attacks and command interception -- making the platform suitable for defence, mining and community applications in extreme conditions.

Strategic benefits for government and shareholders

For government and prime contractors

• Provides a proven, indigenous-controlled supplier to help meet the 5-per-cent indigenous procurement target;

• Supports Arctic sovereignty and defence readiness with secure, Canadian infrastructure;

• Aligns with UNDRIP principles by ensuring fair access to jobs, training and long-term benefits for indigenous communities.

For shareholders and investors

• Targets a fast-growing Northern market driven by multibillion-dollar federal defence and infrastructure spending;

• Leverages defence-grade, quantum-secured energy technology and indigenous-led market access as key competitive advantages;

• Uses a revenue-sharing model that links project performance to stable, long-term cash flows while supporting local communities.

• Indigenous and community benefits.

The alliance includes

• A revenue-sharing mechanism returning a portion of gross revenue from Malahat projects in the region to Acho Dene Koe Group of Companies;

• Targeted employment and training for the first nation members of Acho Dene Koe First Nation;

• Preferential subcontracting to Acho Dene Koe Group of Companies and member-owned businesses.

The partners intend to align their work with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), ensuring that Acho Dene Koe First Nation and future partnering neighbouring first nations benefit equitably from energy and infrastructure development across their territories.

About Acho Dene Koe First Nation

Acho Dene Koe First Nation (ADKFN), a Treaty 11 signatory, is an indigenous government located North of the 60th parallel in the Mackenzie Valley region of the Northwest Territories.

About Malahat Energy Systems Inc.

Malahat is an indigenous-led Canadian energy company supplying grid-scale battery energy storage, community and site-scale microgrids, mission-critical energy for defence and security and shore-power and vessel electrification solutions.

About Aegis Critical Energy Defence Corp.

Aegis Critical Energy Defence is a Canadian energy-technology company focused on secure, mobile and mission-ready battery energy storage systems for defence, remote and critical-infrastructure customers. Aegis brings advanced energy-management systems, quantum-cybersecurity integration and mobile BESS engineering expertise, and is a significant shareholder and strategic partner of Malahat Energy Systems Inc.

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